A Study Of Inter-Provincial Differences Of Electricity Consumption

As the main terminal energy input， electricity plays an important role insafeguarding for the steady and rapid development of China’s economy. However,China’s electric power industry cannot guarantee the production and supply and demandof life, while some local area there electricity investment are overheating and powerconsumption inefficiencies. To solve this problem, this paper study the imbalancebetween supply and demand for electricity and power consumption efficiency with theinter-provincial differences in perspective.The power consumption mainly represent for electricity shortage and over capacitycoexistence structural contradiction between supply and demand. The contradictionbetween supply and demand is caused by the provincial imbalance between consumerdemand and its supply capacity. In order to study the difference of the provinceselectricity consumption demand, this paper use inter-provincial panel data from1995to2010and cointegration test on the relationship between electricity consumption andeconomic growth, the results show that the power consumption of the provinces hold along-term equilibrium relationship with their own economic growth. Further regressionestimates find, in addition to economic growth, electricity consumption is also affectedby the impact of the economic structure, resource structure. In order to reveal the powerconsumption growth performance of inter-provincial differences, the use of factordecomposition analysis to30provinces of china reveal that the provinces of Zhejiang,Henan represented by prominent structure effect whose heavy industrialization trendfurther stimulating the growth in electricity consumption. At the same time, the strengtheffect of power consumption is not obvious factors, such as technological advances andalternative energy has failed to effectively ease the province’s contraction betweenelectricity supply and demand.Power supply and demand imbalance will result in a waste of resources and loss ofefficiency, therefore the further efficiency evaluation of inter-province differencesbetween power supply and demand is necessary. In this paper, static and dynamicefficiency of industrial electricity is estimated by DEA method step-by-step, theresearch finding is: the eastern area’s total factor electricity consumption efficiency ofindustry has been on the efficiency frontier surface, the mid-west area’s efficiency is low relatively and the difference is remarkable convergency tendency. The industrialstructure optimization, the opening and the technology advancement have the positiverole to national electricity consumption efficiency of industry while the non-marketlevel has negative effect. Hence, marketization of electricity-saving mechanism is thefoundation of improving electricity consumption efficiency.In the end, this paper discuss the policies to improve the coordination of theregional imbalance of power consumption on the basis of the above empirical analysis.Regional contradictions of the industrial structure and resource structure is the mainreason for the cause of the power supply and demand in regional conflicts, optimize theindustrial structure and transfer the heavy industry and energy-intensive industries fromeastern region to western region not only realize the comparative advantages of eachregion, but also solve electricity consumption in the region contradiction. Rationalizethe channel of transfer resources between the regions, the rational allocation of coal andtransmission, reducing the intervention of the local government are both effective wayto solve the electricity consumption of regional imbalances. Market mechanisms shouldbe to play a leading role in transfer of industry energy resources, rationalize the priceformation mechanism and deepen the market-oriented reforms of the electricity industryis necessary.